There seems to be a large gap in functionality when it comes to 1099s. Customers and partners can often times have non-US legal entities with US vendors. In this scenario, there is no way to enable the 1099 functionality as it depends on the country of the entity, regardless of vendor address. The 1099 functionality should be specific to the vendors address or use some other parameter to determine if requires 1099 reporting or not.

The current workaround to create a new US entity solely to create 1099 transactions and run reporting for the non-US entity is viable but not practical.